Convertible Bond Analysis Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The difference between face value of the bond and the call price of the bond is considered as

1. call premium
2. call provision
3. discount premium
4. discount provision

MCQ 2: The call premium is $640 and the face value of the bond is $285 then the call price of bonds is

1. 2.25
2. 355
3. 925
4. 0.0225

MCQ 3: The call premium is $456 and the face value of the bond is $234 then the call price of bonds is

1. 1.95
2. 0.0195
3. 222
4. 690

MCQ 4: The face value of the bond is $450 and the call price of bond is $250 then the value of call premium is

1. 0.018
2. 200
3. 700
4. 1.8

MCQ 5: The call premium of bond is subtracted from call price of bond to calculate

1. face value of bond
2. face value of stock
3. book value of stock
4. book value of bond